Property in a Trust can include bank accounts, savings, businesses, shares.
Most forms of assets can go into a protective trust. Even you favourite racehorse! But the majority of folk just put their property in trust to secure the value of their home as far as is reasonably possible for future generations.
Property which cannot go in trusts includes ISAs (Individual Savings Accounts) and PEPs (Personal Equity Plans). There are a few other investments which can only be held by individuals and cannot be trust property. That said, the tax incentives to such investments often become increasingly pointless as you get older: saving 1% a year on income tax as against losing 40% on Inheritance Tax means there is a point at which you should re-invest anyway.
Putting Property in trusts is the most common thing that people do, but few advisers do more than sell standard plans without discussing some of the more useful options which are available which can significantly strengthen the trust. Why not ask for our free guide to putting Property in Trust? We won’t give away our trade secrets, but it will give you some very useful background information.
When you do put a property in trust, under the current rules, each trust can only hold assets worth a maximum of £325,000. So if husband and wife own a property which is worth between £325,001 and £650,000, two trusts are needed. Our biggest competitor charges more than double the amount we do for this, and we don’t think there is twice as much work needed!
When the property you want to put in trust is worth more than £325,000 for a single person or £650,000 for a couple, things get a little more complex. But we have an in house tax barrister who has worked in the past for some of the biggest names in tax planning – but now charges a fraction of their fees.
So if you are considering putting your property in trust, please do get in touch.